Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 75 percent (90,000 units) of its capacity:

Sales revenue	$	1,260,000
Cost of goods sold		461,250
Gross profit	$	798,750
Operating expenses		22,500
Net operating income	$	776,250

Caminos cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 23,000 cups for $9 each (total $207,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $46,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses.

Required:
1.	Complete the incremental analysis of the special order in the table provided below.

2.

Should Camino accept this special order?

	Yes
	No

3.	If Camino were operating at full capacity, what price would Camino require for the special order?

Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 75 percent (90,000 units) of its capacity Sales revenue 1,260,000 Cost of goods sold 461,250 Gross profit 798,750 22,500 Operating expenses Net operating income 776,250 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 23,000 cups for $9 each (total $207,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $46,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses. Required 1. Complete the incremental analysis of the special order in the table provided below. Answer is complete but not entirely correct Per cup Total Incremental Revenue 8.00X 160,000X Less: Incremental Costs 4.10.M 82,000X Variable COGS 6,000X 0.30X Variable Operating Expenses 60,000X 3.00X Endorsement Fee Incremental Profit 0.60X 12,000X 2. Should Camino accept this special or OOYes No 3. If Camino were operating at full capacity, what price would Camino require for the special order? Price per Cup